Which of the Following Statements Is TRUE of Policies and Procedures

question 105

Multiple Choice

Which of the following statements is TRUE of policies and procedures established for industry self-regulation by the Advertising Self-Regulatory Council (ASRC) ?

• A)The Children's Advertising Review Unit (CARU) reviews advertising directed to children between the ages of 12 and 16.
• B)The National Advertising Division of the Council of Better Business Bureaus (NAD) examines advertising claims in direct-response advertising.
• C)The Electronic Retailing Self-Regulation Program (ERSP) examines all advertising claims excluding infomercials and home shopping channels.
• D)The National Advertising Division of the Council of Better Business Bureaus (NAD) is staffed primarily by attorneys.
• E)The Electronic Retailing Self-Regulation Program (ERSP) reviews advertising claims that are local in scope.

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Definitions:

Domestic Corporations

Companies that are incorporated and operate within the country where they were formed.

Excess Fair Value

The amount by which the fair market value of an asset exceeds its carrying value on the balance sheet.

Franchise Contract

A legal agreement granting a person or group the rights to operate a business under the franchisor's model and brand for a specified period.

Controlling Interest

An ownership interest in an entity that gives the holder the power to direct or influence the management and policies of the entity through ownership of a majority of voting shares.